Professional Documents
Culture Documents
Benefit of Franchising
For Franchisor
Expansion
Motivation
Operation of Nonunion Business
Bulk Purchasing
Freedom to use part of companys capital for
purpose other than expansion
For Franchisee
Established product or service
Technical and Managerial Assistance
Quality Control standard
Less Operating Capital
Opportunities for Growth
The difficult start-up work has already been done. The business should have
plans and procedures in place.
The business will have a financial history, which gives you an idea of what to
expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant,
equipment and stock.
Existing employees and managers will have experience they can share.
Financial institution
Financial institutions use financial record to make decision whether to grant a
loan or not. They may also require the financial statements to be audited. The
auditors will not issue a good report where there are no good accounting
records.
Expense Management
This can only be done effectively where there are good accounting records.
Expenses can only be known when there are properly accounted and recorded.
Most logical markets to begin international expansion are the market with; (eg; Latin
America, India, China)